Question: 1: I just watched the video about journal and ledger by Jim and Earl Stice. According to the video, you record every transaction by classifying and grouping similar items. Using booking procedures, you post all entries into the right accounts. Posting means to sort all journal entries amounts and copying the information in the appropriate accounts.
Journals and ledgers are where business transactions are recorded. You first record detail information for each individual account into the journal then you transferred the information to the ledger. According to the video, all accounts are maintained in an accounting record called a ledger. The information in a ledger has the highest information for which trial balances and financial statements are produced. Accountants used the credits and debits recorded in ledger or "books" prepared by bookkeepers to create a company's financial statements. Stice explains that in the journal, it identifies the account posted in it, in the ledger, it identifies the page on which the entry appears in the journal.
2: It's funny that you mentioned that this repeated each reporting period, and its so true. I do like accounting, however; the job for the most part is extremely repetitive. Once you have hit a certain plateau there isn't much more to know. I'm hoping to move to another department that still deals with the accounting side like tax or permits just do something different!
3: What is the revenue recognition principle? What is the expense recognition principle? In your opinion, why are these important to financial reporting?
4: The revenue recognition (fee income)would be anything payed to the company, whether is its placed in accounts receivable or regular payment to company. Expenses are regular bills, and additional fees that need to be payed from the company. For example rent and utility, salaries or paying for cleaning service. Its not apart of assets but is counted as debit because it's give to company or employees, and from cash.
It's important because it like balance a check book, if one transaction is missing, you would be short changed. Because it you don't get payment you can't pay.